Incentive Contract in Supply Chain with Asymmetric Information
The supply chain always appears inefficient because of the different targets of members and information asymmetry, especially when upstream enterprises not only hide information about their effort levels, but also hide information about their technology level. The paper uses principal-agent theory a...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/380142 |
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| _version_ | 1832563919848210432 |
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| author | Yingsheng Su Hongmei Guo Xianyu Wang |
| author_facet | Yingsheng Su Hongmei Guo Xianyu Wang |
| author_sort | Yingsheng Su |
| collection | DOAJ |
| description | The supply chain always appears inefficient because of the different targets of members and information asymmetry, especially when upstream enterprises not only hide information about their effort levels, but also hide information about their technology level. The paper uses principal-agent theory and the theory of regulation to design the contract to realize the maximization of principal's profit on the condition that the contract satisfies the participant and incentive conditions of agent. As a result, it is obvious that the contract achieves the goal of control. In addition, it also can be concluded that the amount of rent that the manufacturer can obtain is up to the value of his information and the condition of his resource. |
| format | Article |
| id | doaj-art-6ffd1b5e5ffa49f3ab8db97f03d6b193 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-6ffd1b5e5ffa49f3ab8db97f03d6b1932025-02-03T01:12:12ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/380142380142Incentive Contract in Supply Chain with Asymmetric InformationYingsheng Su0Hongmei Guo1Xianyu Wang2Statistics School, Southwestern University of Finance and Economics, Chengdu 611130, ChinaBusiness School, Sichuan University, Chengdu 610064, ChinaBusiness School, Sichuan University, Chengdu 610064, ChinaThe supply chain always appears inefficient because of the different targets of members and information asymmetry, especially when upstream enterprises not only hide information about their effort levels, but also hide information about their technology level. The paper uses principal-agent theory and the theory of regulation to design the contract to realize the maximization of principal's profit on the condition that the contract satisfies the participant and incentive conditions of agent. As a result, it is obvious that the contract achieves the goal of control. In addition, it also can be concluded that the amount of rent that the manufacturer can obtain is up to the value of his information and the condition of his resource.http://dx.doi.org/10.1155/2014/380142 |
| spellingShingle | Yingsheng Su Hongmei Guo Xianyu Wang Incentive Contract in Supply Chain with Asymmetric Information Discrete Dynamics in Nature and Society |
| title | Incentive Contract in Supply Chain with Asymmetric Information |
| title_full | Incentive Contract in Supply Chain with Asymmetric Information |
| title_fullStr | Incentive Contract in Supply Chain with Asymmetric Information |
| title_full_unstemmed | Incentive Contract in Supply Chain with Asymmetric Information |
| title_short | Incentive Contract in Supply Chain with Asymmetric Information |
| title_sort | incentive contract in supply chain with asymmetric information |
| url | http://dx.doi.org/10.1155/2014/380142 |
| work_keys_str_mv | AT yingshengsu incentivecontractinsupplychainwithasymmetricinformation AT hongmeiguo incentivecontractinsupplychainwithasymmetricinformation AT xianyuwang incentivecontractinsupplychainwithasymmetricinformation |